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HomeMy WebLinkAboutRes1989-067 . . . Sponsored by: Schaefermeyer CITY OF SEWARD, ALASKA RESOLUTION NO. 89-067 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING A GRAVEL SALES AGREEMENT BETWEEN THE CITY AND CHUGACH ALASKA CORPORATION WHEREAS, the City Council has determined that it is in the public interest to remove gravel and debris from the Fourth of July Creek that may block or deflect stream flow and endanger the dike system and threaten public and private facilities in the SMIC; and WHEREAS, the cost of maintenance can be paid by sales of gravel extracted for commercial use by private contractors; and WHEREAS, a fixed royalty charge of $0.50 per cubic yard is deemed proper at this time based on limited sales of similar materials in this area and the benefit of channel maintenance; and WHEREAS, the city publicly advertised an offer to sell gravel from Fourth of July Creek on June 7, 1989; and WHEREAS, this offer was not for an exclusive right to extract gravel from the creek and limited purchases from not less than 25,000 c.y. to not more than 100,000 c.y. of gravel; and WHEREAS, Chugach Forest Products, a division of Chugach Alaska Corporation, Inc., has requested to purchase 25,000 c.y. of gravel from Fourth of July Creek; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. It is in the public interest to sell gravel from the Fourth of July Creek at a fixed royalty rate of $0.50 per cubic yard. Section 2. BE IT FURTHER RESOLVED that it is in the public interest to waive competitive bidding for the disposal of gravel from Fourth of July Creek. Section 3. The city manager is authorized to execute a sales agreement with Chugach Forest Products, a division of Chugach Alaska Corporation, Inc., for the sale of not less than 25,000 c.y. and not more than 100,000 c.y. of gravel at a royalty charge of $0.50 per c.y., payable to the city of Seward. Section 4. This resolution shall take effect immediately upon its adoption. . . . THE CITY OF SEWARD, ALASKA RESOLUTION NO. 89-067 PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 12th day of June, 1989. THE CITY OF SEWARD, ALASKA Ht!jJ.~{[.e~ AYES: NOES: ABSENT: ABSTAIN: GIESELER, DUNHAM, HILTON, MEEHAN, SIMUTIS NONE O'BRIEN NOLL ATTEST: APPROVED AS TO FORM: Perkins Coie, Attorneys for the city of Seward, Alaska ~11/~ Fred B. Arv1dson City Attorney AAE (City Seal) GRAVEL PURCHASE AGREEMENT FOURTH OF JULY CREEK, SEWARD, ALASKA /. '-- ~ (Cf ~~:::t. . THIS AGREEMENT made and entered into this the City of Seward, Alaska (City), and-- Alaskan corporation and a State of Alaska licensed day of , 1989, between (Purchaser), an contractor. WHEREAS, the City Council of the City of Seward has determined that it is in the public interest to remove the gravel & debris that may block or deflect the channel of the Fourth of July Creek and endanger the dike system constructed by City in 1983; and WHEREAS, a fixed royalty payment to the City of fifty (.50(:) cents per cubic yard is deemed at this time to be a reasonable royalty value for gravel in place in 4th of July Creek. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: 1. Gravel. Gravel is defined to include all granular materials including sand, extracted by the purchaser, 2. Contracting Officer. The contracting Officer and person authorized by the City of Seward to administer this contract is Everett Paul Diener, Manager of Engineering & Utilities. . 3. Contract Documents. The Contract Documents consist of this Agreement and a gravel extraction plan to be prepared by the contractor and submitted to the Contracting Officer prior to starting any extractions of gravel. The gravel extraction plan shall include the information specified in paragraph 9 of this Agreement. The Contracting Officer shall have a period of ten (10) working days from the delivery to the Contracting Officer of that Plan to disapprove the Plan in writing or to require reasonable changes thereto. If the Contracting Officer has not disapproved or made required changes to the Plan wi thin ten (10) days from the delivery of the Plan to the Contracting Officer, the plan shall be deemed accepted. Any changes thereafter must be approved by the Contracting Officer. The approved Gravel Extraction Plan shall be attached hereto as Exhibit A and incorporated as part of this Agreement. 4. Scope of Work. a) This Purchase Agreement requires extraction of not less than 25,000 cubic yards but not more than 100,000 cubic yards of gravel from portions of Fourth of July Creek to be designated by the City.. While extracting gravel the purchaser shall remove rock, gravel, silt, sand, tree stumps and other debris (altogether, the "spoil") disturbed incident to excavating gravel. Such material shall be removed from the river channel and disposed of by the Purchaser. No excavation or removal of material will be permitted within 100 feet of the existing dike, except with specific written permission of the contracting Officer. . 4, City's Compensation. Compensation to City shall be a royalty paid to the City by the purchaser in the amount of 50 cents per cubic yard of gravel except the purchaser shall pay not less then $12,500 to the City. City will not pay . Purchaser any amount whatsoever for emergency or other flood control work performed at the site. Purchaser understands that the work includes the removal of debris, silt, sand, and other materials that have no commercial value, but notwithstanding this fact, Purchaser wi 11 not be permi t ted to claim reimbursement for, or in any other way charge for, the removal and disposal of those materials. City makes no representations as to the relative percentages of different types of materials, and the risk that there is not sufficient gravel for commercial development is solely on Purchaser. A first royalty payment of $6,250 shall be paid at the time this Agreement is signed, thereafter, all royalties shall be paid to the City monthly, not later than the 15th day of the succeeding month. Monthly royalty payments shall be determined by the quantity of gravel extracted, except no monthly payment shall be less than $1,000 until a total of $12,500 has been paid to the City. 5. City's Purchase of Gravel City may purchase gravel from Purchaser at City's sole discretion, either by direct purchase at Purchaser's normal price, or by competitive bid or negotiated price. This contract shall not be deemed to give Purchaser any special right or ability to sell gravel to tbe City, nor to restrict the City from extracting gravel by its own resources or through or from other gravel purchases. 6. Quality of Work. Purchaser agrees that all work and labor shall be done and performed in the best and most workmanlike manner and in strict conformity with the approved Gravel Extraction Plan. All work shall be done to the satisfaction of City and subject to inspection at all times and further subject to approvals required by any regulatory agencies of the local, state or federal governments. . The work includes the Purchaser's effort to extract gravel, maintenance of the gravel extraction zone, maintenance of haul roads and any other activity incidental to this Agreement. 7. Permits. Purchaser shall obtain all necessary permits, rights-of-entry, or other consents from all governmental agencies. Copies of all such permits shall be provided to City prior to Purchaser commencing work under this Agreement. The risk of a failure to obtain any required permits shall be solely on Purchaser although the City agrees to, in good faith, assist Purchaser in obtaining any required permits, 8. Commencement of is issued by the City. gravel extraction plan. Work. Purchaser may s tart as soon as a Not ice to Proceed Such notice will normally be issued upon approval of the 9. Gravel Extraction Plan. Subject to paragraph 2, Purchaser shall submit to the city a Gravel Extraction Plan for City's approval prior to commencement of any work under this Agreement. All work performed by Purchaser under this Agreement shall comply with the approved plan. The plan shall address or identify the following: a) a work plan b) limits of the gravel extraction zone . c) the proposed location for work within the gravel extraction zone, d) the time period for operations, e) the disposal of unusable spoil, f) flood control efforts, Gravel Extract Plan (continue) g) access routes, haul routes, traffic control, signing . h) stockpiling plans, i) the estimated quantity of spoil to be extracted, and j) other reasonable and relevant information for the performance of this contract as may be requested by the Contracting Officer 10. Access Rights. City reserves for itself and any others whom it may authorize the right of free access over and through the gravel extraction zone for the purpose of access to 4th of July Creek. This right shall extend to the use of roads to and through the gravel extraction zone, however, use of such roads by others within the gravel extract zone shall not unreasonably interfere with Purchaser's operations under this Agreement. This is not an exclusive Agreement for a gravel extraction in the 4th of July Creek, and other purchasers may be working in the creek. 11. Disposal of Spoil. Purchaser shall bear sole responsibility for of all spoil, both usable and unusable, removed from Fourth of July Creek to any provision of this Agreement. Unusable spoil removed from Fourth Creek pursuant to the provisions of this Agreement shall be disposed of locations approved in writing in advance by the contracting officer. disposal pursuant of July in the . 12. Term of Agreement. The term of this Agreement shall commence on the date of this Agreement first written above.. and shall terminate on the last day of December, 1989, unless extended in writing by the City. The City is under no obligation to extend the Agreement, regardless of the amount of gravel extracted by the Purchaser. 13. Insurance. Purchaser shall maintain in force Worker's Compensation insurance in statutory amounts, and automobile liability and comprehensive general liability insurance including, without limitation, coverage for premises and operations, products and completed operations, contractual liability, broad form property damage and personal injury liability, in amounts not less than Five Hundred Thousand Dollars ($500,000.00) per occurrence and One million dollars ($1,000,000.00) aggregate (combined single limit for bodily injury and property damage) during the term of this Agreement. Purchaser shall have City added as an additional insured on the insurance policies required by this paragraph. Such policies shall contain an Agreement by the insurers that such policies shall not be cancelled without at least twenty (20) days prior written notice to City. City shall be provided certificates of all such insurance within fifteen (15) days of the date of execution of this policy and copies of all such insurance policies within forty five (45) days after the execution of this Agreement. Copies of all replacement policies shall be provided to City promptly after the issuance thereof. 14. Records. Purchaser shall keep accurate records of the volume of gravel and unsuitable spoil (either by weight, volume or other standards generally accepted in the industry) removed from 4th of July Creek under this Agreement. Not later than 30 days after the end of each calendar quarter Purchaser shall provide to City copies of all records relating to the volume of spoil and gravel removed during . that calendar quarter. City shall have the right to audit Purchaser's records concerning the volume of spoil and gravel removed. 15. Exclusive Rights. Purchaser shall not have the exclusive right to extract spoil from Fourth of July Creek.